Securitisation: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Mend link.)
(Remove out of date material.)
 
(2 intermediate revisions by the same user not shown)
Line 1: Line 1:
1.  ''Assets - tradable securities''.
1.  ''Assets - tradeable securities''.


The process of converting non-tradable assets into tradable securities.
The process of converting non-tradeable assets into tradeable securities.


For example turning non-tradable assets, like residential mortgage loans, into tradable assets (such as mortgage-backed securities).
For example turning non-tradeable assets, like residential mortgage loans, into tradeable assets (such as mortgage-backed securities).




Line 19: Line 19:
2.
2.


The tradable securities created by the securitisation process.
The tradeable securities created by the securitisation process.




Line 39: Line 39:
* [[Mortgage-backed securities]]  (MBS)
* [[Mortgage-backed securities]]  (MBS)
* [[Prospectus Regulation]]
* [[Prospectus Regulation]]
* [[Receivables securitisation]]
* [[Securitisation Regulation]]
* [[Securitisation Regulation]]
* [[Securitisation special purpose vehicle]]
* [[Securitisation special purpose vehicle]]
Line 49: Line 50:
* [[Sukuk]]
* [[Sukuk]]
* [[Whole business securitisation]]
* [[Whole business securitisation]]
==Other resource==
[http://www.treasurers.org/node/9209 The return of securitisation, The Treasurer, July 2013]


[[Category:Long_term_funding]]
[[Category:Long_term_funding]]

Latest revision as of 19:28, 20 January 2024

1. Assets - tradeable securities.

The process of converting non-tradeable assets into tradeable securities.

For example turning non-tradeable assets, like residential mortgage loans, into tradeable assets (such as mortgage-backed securities).


This is often undertaken through a securitisation special purpose vehicle.


The credit risk of the assets is divided into tranches, and payments to the investors are dependent on the performance of the assets.

When a special purpose vehicle is used, the assets are transferred to the special purpose vehicle, which then issues securities.


Non-performance of underlying assets is a key risk for investors, and was one of the triggers for the Global Financial Crisis (GFC).


2.

The tradeable securities created by the securitisation process.


3. Securities - issuance.

The trend for larger non-financial companies to use less bank lending facilities and instead to issue their own securities direct to the markets.


See also